EUR/USD Price Analysis: Pair extends losing streak but holds above key support
- EUR/USD declines to 1.0430 on Wednesday, marking its third consecutive daily loss.
- The pair has already shed more than 0.50% over the course of the week.
- RSI drops to 53, signaling fading bullish momentum, while MACD histogram shows decreasing green bars.
The EUR/USD pair continued to pull back on Wednesday, shedding another 0.17% to trade around 1.0430. This marks its third straight day in the red, erasing over 0.50% of last week’s gains when the pair surged more than 1.50%. Despite the ongoing correction, the broader technical outlook remains constructive as long as the pair stays above the 20-day Simple Moving Average (SMA).
Momentum indicators reflect a shift in sentiment. The Relative Strength Index (RSI) declined sharply to 53, staying in positive territory but signaling waning buying pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram prints decreasing green bars, hinting that bullish momentum is losing traction. However, as long as EUR/USD remains above the 20-day SMA, buyers may still have room to regain control.
From a broader perspective, the 100-day and 20-day SMAs are converging near 1.0450, raising concerns about a potential bearish crossover. If this materializes, it could confirm that the recent rally was merely a temporary correction, shifting the long-term outlook back to the downside. For now, traders will keep an eye on whether the pair can maintain support above the 20-day SMA or if further downside pressure will trigger a deeper pullback.
EUR/USD daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
